Do You Have a Viable Business Model?

Many businesses start with a lot of enthusiasm and not a lot of viability.

Every day I hear stories of people who invest years (and thousands of dollars) into businesses that do not have a viable model. And this can men real trouble for your business, as you work hard but don’t see the results that you deserve.

You can turn things around by looking at how viable your business model is.

You have a viable business model when:

Your product is clearly defined and scalable (you can produce/deliver considerably more of what you sell than you are now)

Your market is clearly defined and you have enough customers who want / need your product to enable you to grow.

You can make a profit

You have some form of competitive advantage

Rating: How would you rate the viability of your business model (1 low / 5 high)?

Rating Summary:

If you rated yourself a 5, you believe that you have a viable business model. To ensure you’re on track conduct a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, find relevant businesses and industries to benchmark against and create time for strategic planning.

And if you rated yourself 1 to 4, there are some tips below that will help you as you work on improving the viability of your model:

Viable Business Model Tips

If you need to develop a more viable business model:

Research and study your industry and competition

Develop a solid financial model for your business

Seek out experienced financial advisors

Clearly articulate your core value and competitive advantage

Study other businesses similar to yours that are not in the same industry for lateral ideas

Case Study: Viable Business Model

Eat Fit Food is Australia’s leading health food home delivery business and Eat Fit Farm is a pristine retreat in Berrima, NSW, which produces natural fruit and vegetables for Sydney’s Eat Fit Food Kitchen.

Businesswomen’s Hall of Fame Inductee, Bianca Monley, started her business from her tiny kitchen in 2002 after identifying a gap in the food market in Sydney.

She could identify with time-poor families with busy lifestyles who were succumbing to fast-food binges rather than eating a variety of healthy wholefoods. So she set about creating a business that delivered healthy meals to people’s doors.

As an early adopter, she was in a prime position as the health food boom really took hold in Sydney and now she has a thriving business with a real competitive advantage (and an enviable client base that includes Hugh Jackman, Turia Pitt, Delta Goodrem, Miranda Kerr and Michael Klim, to name a few).

Bianca’s tips for success when it comes to creating a Viable Business Model:

Work out your long term goals. Write them down. They need to have a synergy so every minute of every day you are working towards one big goal

Make a business plan and know what you are up for from the start

Always over-estimate expenses and underestimate revenues

Get cash flowing as soon as possible. Cashflow is the lifeline of your business. Grow as much as the cashflow allows.

Stay true to your passion!

Share This

About the Author

Suzi Dafnis is the CEO at HerBusiness and Chairperson of its Advisory Board. Suzi has been involved with the business since 1995. In 1998, she took over from its founder and has since managed and grown the community. She remains its media spokesperson and a champion of women in business.

REACH Higher Series

Mentoring

Latest Articles

Member Seona Roberts is offering her new download for FREE! Her new eBook will get you started towards operating more efficiently in 3 easy steps! Get it here now. Learn more about Seona here. read more

Have you ever been in a situation where you felt you undercharged? Or perhaps you find when you get in front of a client or prospect, you get a little tongue tied when it comes to talking about “the... read more

Has “overload” become the “new normal” for you? If so, you’re not alone. A recent study by the UK government has found that women aged 25 – 54 are more stressed than their male colleagues, with this pressure peaking... read more

Ever wanted to know EXACTLY how to run an awesome first meeting with a potential client? This is for you! Member Frances Pratt is running a LIVE ONLINE coaching event, “How to Nail your First Client Meeting” You will... read more

Recently, during REACH Week, we hosted a number of Facebook LIVE Sessions exploring the 5-part REACH ProcessTM And there was one process that really captured people’s imagination. It’s a simple 3-part framework that, when done well, literally pulls you... read more

About herBusiness

Celebrating 20 Years!

HerBusiness (formerly Australian Businesswomen’s Network) is a membership community that provides education, training, resources, mentoring and support for women who want to:

Grow their businesses

Connect with other business owners and expand their network

Learn from world-leading role models and experts

Be inspired and encouraged through every stage of their growth, from the startup phase to established business and beyond